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Iranian insurance companies' entering the Azerbaijani market will be useful in terms of making Iranian investments in this sector, President of Training and Consulting Center "Consultant", an expert in the field of insurance Khayal Mammadkhanli told Trend August 6.

"The emergence of Iranian insurance companies on Azerbaijani insurance market will be helpful in terms of making Iranian investments in the sector, as well create opportunities for the activities of Azerbaijani insurance companies in Iran," said Mammadkhanli.

He went on to add that it would be better if the Iranian and other foreign companies entering the Azerbaijani market created joint ventures with the existing Azerbaijani companies, which are today not in a very good position.

"There are several insurance companies in Azerbaijan that are in a difficult situation," he said. "It would be great if the Iranian insurance companies that want to start operating in Azerbaijan acquired these companies and invested in them. These companies already have a certain customer segment, and the frequent opening and closing of the insurance companies doesn't have a very positive impact on this area."

The expert said that Iranian insurance companies' entering the Azerbaijani market will not lead to its rapid growth.

"Today, Iranian insurance companies are interested in the activities in Azerbaijan, but it should be noted that the Azerbaijani insurance companies have little to learn from Iran, as in the whole, the Azerbaijani insurance market is far ahead of Iran according to modernity and technical equipment," said Mammadkhanli. "I don't think that the activities of the Iranian insurance companies in Azerbaijan will lead to the rapid development of this sector, as our insurance market is closer to the European and world standards than the Iranian one."

Previously, the country had a joint Azerbaijani-Iranian Insurance Company "Azer-Asia", but it was closed in 2008 due to the refusal of the Ministry of Finance of Azerbaijan to extend its license. The company operated on the Azerbaijani insurance market since 1997.